Marketing

(1)Respond to the following in a minimum of 175 words each:
Why is marketing research important to the development of a marketing strategy? Provide a specific example.
(2)Select a product with which you are familiar.
Based on your knowledge of the product lifecycle, what types of changes will occur to your selected product? How will this affect the marketing of your selected product?

ANSWER

Marketing

Every successful company majorly relies on its marketing strategy. Whether a startup business or an advanced organization, it is essential for any business to conduct proper marketing research to develop a relevant marketing strategy (McDaniel & Gates, 2018). Market research entails gathering, analyzing, and interpreting crucial information about the potential market. It helps in making an informed and carefully analyzed business decision making. Risks are minimized, and market research also helps in detecting and being prepared for future challenges that the business may phases (McDaniel & Gates, 2018). With well-conducted market research, the company will be in a position to develop a proper marketing strategy. The marketing strategy may seek to either fill a gap that fellow competitors have failed to address and will also be vital in understanding what the potential market is lacking. A specific example of the importance of market research for developing a marketing strategy is the infamous quote used by KFC, “Finger Lickin’ Good,” to promote their franchise translated to “Eat Your Fingers Off” in Chinese and was not received well. If the marketing team had done proper research, this would have been avoided and used another strategy.

Whether new or advanced in the market, every product undergoes the four stages of the product life cycle: introduction, growth, maturity, and decline. For the Coca-Cola Company, it is one of the world’s leading franchises, with its products available on every continent. The company has also undergone the first three stages. For instance, its introduction was in 1886. Although it was met with skepticism on its ingredients, proper marketing research and advertising saw the company grow and mature (Cotton, 2020). It is currently in the maturity stage and boasts of being one of the most successful companies in the world. However, with competitors like Pepsi gaining more ground, the company is most likely to either increase more flavors or invest further in advertising. The competition and introduction of new flavors will affect the marketing of the company by increasing expenditure through its advertisements. For now, the company has spent an average of $4bn in advertisement (Cotton, 2020). Stiff competition and adding more flavors into the market will see that figure rise higher.

References

Cotton, B. (2020). How much does Coca-Cola Spend on Advertising? Retrieved from https://www.businessleader.co.uk/how-much-money-does-coca-cola-spend-on-advertising/80315/#:~:text=On%20average%2C%20Coca%2DCola%20has,%244bn%20on%20global%20advertising.

McDaniel Jr, C., & Gates, R. (2018). Marketing research. John Wiley & Sons.